Best of the Brokers for 30 May 2014

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AMEC
Berenberg has initiated on Amec with a “buy” recommendation and a target price of 1450p. The broker says the merger with Foster Wheeler will give Amec “transformative potential” through revenue synergies, with likely sustained strong earnings growth provided by its North Sea exposure.

TESCO
Shore Capital is recommending to “sell” Tesco at 303p, with an expectation of a decline in like for like sales ahead. The broker believes increasing UK customer perception of Tesco as expensive compared to lower-cost rivals, and raised concerns about Tesco’s core chain and the robustness of current forecasts.

IMI
UBS upgraded FTSE 100 engineering firm IMI from “neutral” to a “buy” rating with a higher target price of 1,700p, up from 1,600p. The broker said the upgrade reflected increased confidence in new chief executive Mark Selway’s ability to accelerate organic sales growth.